Start Saving Now: How to Plan Your Family’s Finances

Parents need to plan their finances well to afford future expenses for their whole family.

Aneth Ng-Lim, Citibank’s country corporate affairs director, advises moms to be wise with their money. For example, instead of spending on a grand first birthday celebration that the child won’t even remember, invest the money in mutual funds that could grow over time.

But how does one do it? Ng-Lim advises to first analyze the flow of your household expenses for three to six months. This way, you can decide where to cut costs in order to save more. Would it be more practical to bring baon to work instead of dining out? Is there a neighbor you can carpool with to the office so you can cut down on gas and reduce your carbon footprint? Can you give up your monthly gym membership and run or bike instead? Observe your lifestyle patterns and see where change is manageable.

When planning for future expenses, study all your options and determine the pros and cons before making a decision. For example, when buying a car, consider the make, your requirements, budget, and payment options. If the amount would require you to tighten your belt, decide if you are ready for such a sacrifice and commit to it. Discern which one you can manage: a brand new car that is expensive or a cheaper secondhand car that may mean more maintenance costs?